http://www.bloomberg.com/news/2013-07-15/goldman-sachs-s-fabulous-fab-faces-sec-fraud-trial-today.html
Fabrice Tourre, the ex-Goldman Sachs Group Inc. (GS) vice president whose congressional testimony put a face on the complex structured investments that contributed to the 2008 financial crisis, is set to face trial today on allegations he misled investors.
Tourre, dubbed “Fabulous Fab” by a friend, faces fraud claims in a U.S. Securities and Exchange Commission lawsuit over his role in Abacus 2007-AC1, a synthetic collateralized debt obligation tied to home mortgages. The trial comes three years to the day after the SEC announced Goldman Sachs’s agreement to pay a then-record $550 million settlement and admit mistakes in marketing Abacus.
Jurors will want to know whether Tourre intentionally misled customers, said Ernest Badway, a former SEC enforcement attorney with the Philadelphia-based law firm Fox Rothschild LLP. “They’re going to look to see if he said something that he knew to be untrue,” Badway said.
Tourre, now studying for a doctorate in economics at the University of Chicago, spent part of the time waiting for trial working for a relief organization in Kigali, Rwanda. Since Goldman Sachs settled, he has stood alone against the government’s claims that he misled investors by failing to tell them that the hedge fund Paulson & Co. helped select the assets underlying Abacus while betting they would decline in value.
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